Inflation, AI Fears Drive US Stock Selloff

September CPI rose 3.7% year over year, the Bureau of Labor Statistics reported, up from 3.4% in August. Core CPI rose 2.6% year over year and 0.3% month over month, both above forecast, after gasoline jumped 9.1% on the month and energy prices rose 20.4% over the year. Headline CPI rose 0.6% month over month, matching expectations. The S&P 500 fell 1.1% to 7,718.94, the Nasdaq Composite fell 1.9% to 26,692.87, and the Dow fell 0.09% to 51,621.48, with tech and chip stocks leading the drop. The 10-year Treasury yield hit 5.329% before reversing to 5.185%. CoreWeave's bond yield rose above 15%, called distress-level by Bloomberg. Fed's Goolsbee called the reading "discouraging" and said a 4% core inflation trend is "not acceptable"; Bowman said there was no urgency for further rate action; Barkin said the print was higher than he hoped. Bank of America, BlackRock and Morgan Stanley reported Q3 earnings. WTI rose 1.01% to $95.09; Brent rose 0.38% to $106.09. CONTESTED: Left-leaning coverage frames an inflation-led plunge that lifts Fed hike odds and deepens a chip rout; right-leaning coverage pairs hot CPI with tech woes and cites a 1.6% Nasdaq slide, versus the 1.9% Nasdaq Composite close reported elsewhere. The 3.7% CPI print itself is uncontested.